- FTSE 100 adds 63 points to 10,910
- Wall Street opens in red
- Rightmove bounces 5.6%
- Melrose Industries sinks 14%
4.45pm: FTSE eyes 11,000
It was another record-breaking day for London stocks, with the FTSE 100 up 63 points at 10,910.
“Most global stock indices were jittery ahead of the weekend with a US attack on Iran looming, the exception being the FTSE 100 which hit its third straight record high in as many days amid rising oil and precious metal prices, benefitting its constituents,” IG chief technical analyst Axel Rudolph said.
3.15pm: Index holds 43-point gain as Wall Street sells off on hot inflation and AI workforce fears
London's index is showing resilience on Friday as US markets take a beating, with the Dow down almost 700 points and the S&P 500 and Nasdaq off sharply too.
Two catalysts are driving the selloff. January's producer price index rose 0.5% month over month, well above the 0.3% economists expected, while core PPI came in at 0.8% against forecasts of 0.3%, reviving inflation concerns at an uncomfortable moment for markets already on edge.
The other jolt came from Block, whose co-founder, Jack Dorsey, announced cuts to nearly half its workforce, citing AI's capacity to reshape business needs. Block shares jumped 20% on the news, but Dorsey's warning that most companies would follow within a year landed badly across software and services stocks.
Netflix rose after abandoning its Warner Bros. Discovery pursuit, leaving Paramount Skydance to clinch that deal.
2.01pm: Footsie gains as Wall Street braces for bruising open on hot inflation data
London's index is up 44 points but well off session highs, showing unusual resilience as US futures point sharply lower after wholesale inflation surprised to the upside.
The FTSE 100 is clinging to modest gains on Friday, outperforming a Wall Street that looks set to close out a difficult week on a sour note. Dow and Nasdaq futures are pointing to a continuation of Thursday's Nvidia-led selloff.
Two catalysts are driving the mood. January's producer price index rose 0.5% month over month, well above the 0.3% economists expected, while core PPI came in at 0.8% against forecasts of 0.3%, reviving inflation concerns.
The other jolt came from Block, whose co-founder, Jack Dorsey, announced cuts to nearly half its workforce, citing AI's ability to reshape business needs.
Shares jumped 20% in premarket. Dorsey predicted most companies would follow within a year, a comment that landed badly across software and services stocks already rattled by AI disruption fears.
Netflix rose after dropping its Warner Bros. Discovery pursuit, leaving Paramount Skydance to clinch that deal.
11am: Consumer confidence dips
UK consumer confidence dipped in February 2026, with GfK’s index falling three points to -19, reversing recent modest improvements. Weakening personal finances are driving the decline: fewer households plan major purchases or to save, even as inflation begins to ease. Rising unemployment, the highest in nearly five years, is heightening job security concerns.
Consumers’ outlook for economic growth remains subdued, suggesting cautious spending ahead. Indicators such as the Major Purchase Index (-14) and Savings Index (21) reflect constrained discretionary and savings behaviour, signalling potential headwinds for retailers, consumer-focused sectors, and broader domestic demand in the coming months.
10am: 11,000 in sight
The FTSE 100 has held onto its morning gains, now up 51 points at 10,897.42.
“The FTSE 100 is now less than 1% away from hitting 11,000, suggesting the milestone is perfectly in reach in a matter of days or hours rather than months,” said AJ Bell's Russ Mould.
“Two months in, it looks like 2026 could be a second bumper year in a row for investors putting their faith in UK stocks if current performance trends continue."
Mould commented that a resilient set of earnings from Rightmove, as well as a new share buyback programme, and plans to launch an app inside ChatGPT have helped to calm investors’ nerves.
"Rightmove spooked the market last year with plans to spend on AI-related services, and now it is under pressure to justify this expenditure and say how it will fight off competition from generative AI platforms.
“Melrose crashed 14% after disappointing with 2026 sales guidance amid supply chain and tariff issues,” Mould added.
9am: Rotation trade boosts Footsie
The FTSE 100 has built on its early gains, now up 56 points at 10,902.96, a gain of over 0.5%.
According to Swissquote's Ipek Ozkardeskaya, the index is a big beneficiary as the rotation trade gains momentum. Investors are shifting capital from US tech into non-tech sectors and global indices, boosting the appeal of energy and mining-heavy stocks. European inflation has eased, and Fed rate-cut expectations have moderated after stronger employment and inflation data, even as US Q4 GDP slowed.
"I like the FTSE 100, as its energy and mining exposure fits well with the rotation theme, although elevated valuations in parts of the mining sector could become problematic down the line," Ozkardeskaya commented.
"Looking ahead, uncertainty surrounding AI and its social and economic impact will continue to shape markets, sometimes unpredictably," she added. "This environment could favour a flight toward 'high assets, low obsolescence' - companies with tangible assets or durable competitive moats that face limited disruption risk - the HALO trade that everyone is talking about."
8.15am: FTSE 100 off to a positive start
The FTSE 100 made modest gains at the open, adding 30 points to 10,876.96 in early dealings.
Rightmove led the gainers with a 3.6% rise on the back of its 2025 results, followed by miners Fresnillo PLC (LSE:FRES) and Antofagasta PLC (LSE:ANTO), with gains of 3.5% and 3% respectively. Anglo American PLC (LSE:AAL) and Endeavour Mining PLC (LSE:EDV, TSX:EDV, OTCQX:EDVMF, FRA:6E2) round off the top 5, adding 2.6% and 2.1%.
Despite those strong results, Melrose Industries tops the loser board, with a fall of 6.6%. Entain PLC (LSE:ENT) is down 3.7% and Barclays PLC (LSE:BARC) has shed 2,2%.
IAG has also lost altitude, down 1.7%, even though it also reported record operating profit after overcoming a difficult third quarter.
Adam Vettese, market analyst for eToro, commented that profit taking may be weighing on the airline group, "but also revenue growth has slowed to low single digits, yields are flat, and Q3 softness flags demand risks in this cyclical trade. Fuel and FX tailwinds won’t last forever, and €6 billion debt can quickly become an issue in a shock-prone sector."
7.55am: Stocks to watch at the open
Melrose Industries PLC (LSE:MRO, OTC:MLSPF) is absolutely soaring. Results from the aerospace and defence group show revenue climbing 8% to £3.59 billion in 2025, but the real star is the profit. Adjusted operating profit jumped 23%, and it swung back from a 2024 loss to a healthy £468 million statutory profit.
The Engines division is doing the heavy lifting, fueled by aerospace demand and a successful transformation. Investors have plenty to smile about, too: dividends are up 20%, and there’s a fresh £175 million share buyback on the way.
Rightmove PLC (LSE:RMV) is proving that the UK’s property obsession is still going strong. The property portal's 2025 results are stellar, with revenue hitting £425 million (up 9%) and profits following suit. It's feeling so confident that it's restarting a £90 million share buyback and boosting dividends.
The company has made a massive pivot into AI and innovation, including conversational search tools and ChatGPT integrations to keep hunters clicking. With its "Online Agent Valuation" tool breaking records and a new NatWest mortgage partnership, the portal is targeting double-digit growth.
International Consolidated Airlines Group SA (LSE:IAG), owner of British Airways and Iberia, just landed its strongest financial results ever, boasting a record €5 billion operating profit. With travel demand soaring, it's sharing the wealth by returning €1.5 billion to shareholders through buybacks and dividends.
It’s not just about the money, though: on-time performance is up, and it's also teaming up with Starlink to bring high-speed Wi-Fi to flights. Net debt is falling, and it also has its eye on Portugal's national carrier TAP as it monitors a partial sale process by the Portuguese government.
7.15am: FTSE 100 looks to extend record
The FTSE 100 is likely to build on its gains when the market opens after setting a new record on Thursday.
On the futures market, London's blue-chip benchmark has been called 29 points higher. It added 40 points to 10,847 in the previous session, "leaving it well placed to make a push to 11,000 next week,” according to IG chief market analyst Chris Beauchamp.
The index was supported by a 10% jump in London Stock Exchange Group PLC (LSE:LSEG) after the data and markets group unveiled a £3 billion share buyback, a new set of medium-term financial targets and the long-awaited retirement of its Annual Subscription Value metric.
Rolls-Royce Holdings PLC (LSE:RR.) also lent a hand, jumping 5% after it upgraded its medium-term targets and unveiled plans to return up to £9 billion to shareholders after reporting another sharp jump in profits and cash flow.
Wall Street wrapped up Thursday’s session on a mixed note, with tech stocks pulling back even as blue chips held their ground. The Nasdaq slid 1.2%, and the S&P 500 fell 0.5%. The Dow Jones managed to stay just in positive territory, inching up 17 points.
Asian stocks are mixed this morning. In Tokyo, the Nikkei 225 is less than 0.1% firmer as the trading day draws to a close. The SSE Composite in Shanghai is up 0.4%, and the Hang Seng in Hong Kong is up 1%. Seoul's Kospi is down 1%, and the ASX 200 in Sydney closed 0.25% higher.